Reconciling a bank statement locates inconsistencies between the checking account owner and the bank. Comparing the deposits and debits in a given bank statement period shows items that were not recorded by the checking account owner in the check ledger and brings unauthorized debits recorded on the bank statement to the owner&amp;#039;s attention. When a reconciliation statement is complete, both the bank statement and the checkbook ledger should equally reflect the accurate liquid balance of the checking account.

Step 1

Write the column titles on the spread sheet. There will be five columns titled: details, register debits, register credits, statement debits and statement credits.

Step 2

Write the row headings starting with only the items on the bank statement: balance as of reconciliation date, credit interest, bank charges, errors. Then create row headings for amounts in the register not yet recorded on the statement.

Write the period-ending balance from the bank statement in the register&amp;#039;s debit column. Write the register&amp;#039;s ending balance in the statement&amp;#039;s credit column. Note: a reconciliation statement functions like a company balance sheet--the credits for the register are seen as debits in the statement and vice-versa.

Step 4

Record the interest earned from the bank statement in the register debit column.

Step 5

Add all bank charges and record the total in the credit register column.

Step 6

Total all charges and debits in the account statement that do not belong to the account. Record this in the register&amp;#039;s debit column.

Step 7

Add all checks not yet cashed by the bank in the register&amp;#039;s debit column.

Step 8

Total each column. If there were unrecorded items on either side, the total debits and credits in the register will not equal the total debits and credits in the register columns.

Step 9

Subtract the register credit total from the debit total. Subtract the statement debit total from the credit total. If the reconciliation was properly computed, the two differences should be the same.

Things Needed

Spreadsheet

Calculator

Pencil

Bank statement

Checkbook ledger

Tip

Report all statement errors and unapproved account debits to the bank immediately to dispute them.

About the Author

In 2001, Kay Miranda had her second screenplay purchased, then started writing a weekly column in "The Messenger," with work appearing in "Xquisite" and "Valley Scene Magazine." Miranda earned a Bachelor of Arts in bio-psychology from the University of Colorado. Fortunate to play collegiate tennis, Miranda has extensive travel and coaching experience.

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